Super fund eyes farms offshore

The New Zealand Superannuation Fund is considering buying more overseas farmland amid growing demand for food in emerging markets like China and Indonesia.

The fund's general manager of investments, Matt Whineray, has told Reuters news agency that the $21 billion fund is aiming to increase its allocation for crop, dairy and livestock farming operations from less than 1% to 3%.

The Fund is also also interested in assets that struggling European banks may sell to improve their capital base as well as catastrophe bonds issued by firms offering insurance against natural disasters in the United States, Japan and Europe.

It would reduce its holdings of international equities and fixed income to invest in these other areas.